UN forecasts global economic growth of 2.7 percent this year

UNITED NATIONS

The United Nations is forecasting that the global economy will grow by 2.7 percent this year, slightly lower than last year's estimate, citing the impact of higher U.S. tariffs, economic uncertainties and geopolitical tensions.

U.N. economists predicted that growth would edge up to 2.9 percent in 2027. That's still well below the average 3.2 percent growth between 2010 and 2019, before the COVID-19 pandemic hurt economies around the globe. The estimate for 2025 is 2.8 percent.

“A combination of economic, geopolitical and technological tensions is reshaping the global landscape," U.N. Secretary-General Antonio Guterres said on Jan. 8 in a statement, "generating new economic uncertainty and social vulnerabilities.”

According to the U.N.’s World Economic Situation and Prospects report, growth in Europe, Japan and the United States is projected to hold broadly steady.

In the United States, the U.N. said growth declined from 2.8 percent in 2024 to an estimated 1.9 percent in 2025, “as strong consumer spending and AI-related investment were partly offset by weak residential and commercial construction.”

The U.N. projected a very small rise in U.S. economic growth this year to 2 percent, and it forecast that growth will edge up to 2.2 percent in 2027.

Japan’s economy is forecast to grow by 0.9 percent this year and by 1 percenr in 2027 — below the 1.2 percent growth estimated for 2025.

The European Union’s economic growth is forecast to decline from 1.5 percent in 2025 to 1.4 percent in 2026 “as higher U.S. tariffs and ongoing geopolitical uncertainty dampen exports,” the report said. But it projected growth will increase to 1.6 percent in 2027.

On a more positive note, the U.N. said some large developing economies, including China, India and Indonesia, are expected to continue to see solid growth.